Asm International N.v. · EURONEXT:ASM
Asm International — Q2 2025 Earnings Presentation
43 slides from Asm International's earnings presentation, Jul 23, 2025
Slide 1: ASM Q2 2025 results
ASM Q2 2025 results July 22, 2025 ASM proprietary information | 1
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements All matters discussed in this presentation, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-l
Slide 3: Contents
Contents 1 Investment highlights 2 Q2 2025 results 3 Business environment, strategy, and targets 4 Annex: detailed financials July 22, 2025 ASM proprietary information | 3
Slide 4: Investment highlights
Investment highlights July 22, 2025 ASM proprietary information | 4
Slide 5: Investment highlights
Investment highlights Strong long-term prospects • ASM is focused on enabling deposition technologies, with key strengths in innovation • Leader in the ALD market, which is expected to grow by a CAGR of 10%-14% from 2022 to 2027 • Expanding our position in the silicon epitaxy (Si Epi) market (CAGR o
Slide 6: Q2 2025 results
Q2 2025 results July 22, 2025 ASM proprietary information | 6
Slide 7: Financial highlights Q2 2025
Financial highlights Q2 2025 €702m €836m 51.8% New orders Revenue Gross margin (-4% yoy at constant currencies) (+23% yoy at constant currencies) (49.8% in Q2 2024) €263m 31.5% €173m Adjusted operating profit Adjusted operating margin(1) Adjusted net earnings(1) (€182m in Q2 2024) (25.8% in Q2 2024)
Slide 8: Q2 2025 highlights
Q2 2025 highlights Orders and revenue • New orders of €702 million in Q2 2025 were down by 4% yoy at constant currencies (cc), mainly due to the lumpy nature of quarterly order intake and compared to a relatively high memory contribution in Q2 2024. • New orders decreased by 10% qoq at cc, due to lo
Slide 9: New orders
New orders Lower level in Q2 explained by lumpy nature of quarterly order intake Orders and backlog New orders (€m) • Q2 2025 new orders came in at €702 million, -4% yoy at constant currencies (cc) and -7% as 1.1 1.0 reported. The change was mainly due to the lumpy 1,750 0.8 1.0 nature of quarterly
Slide 10: Revenue and gross margin
Revenue and gross margin Top-line growth qoq at 7% cc, ahead of guidance Revenue Gross profit Revenue (€m) (€m) • Revenue increased 23% yoy at cc (18% as reported). • Q2 revenue was driven by foundry, followed by 839 836 900 53.4% 54.0% memory and logic. • Combined logic/foundry represented the larg
Slide 11: SG&A and R&D
SG&A and R&D Continued cost control whilst investing in innovation Adjusted SG&A Adjusted R&D Adjusted SG&A (€m) (€m) • Adjusted SG&A decreased by 1% qoq and 15% yoy at cc (-5% qoq and -17% yoy as reported). 12.4% • The yoy decrease is mainly due to a one-off tax 12.0% 160 15.0% 160 11.7% 11.6% char
Slide 12: Operating result
Operating result Strong 40% yoy increase, excluding one-off expense in Q2 2024 Adjusted operating result Adjusted operating profit (€m) • Operating profit increased strongly in Q2, by approximately 40% adjusted for a one-off SG&A expense last year, on the back of increased sales, 32.3% 35.0% 350 31.
Slide 13: Net earnings
Net earnings Q2 level up yoy despite FX loss Adjusted operating result to adjusted net earnings Foreign currency exchange loss (€m) • Q2 2025 adjusted net earnings included a currency translation loss of €60 million, mainly due to the Q2 24 Q1 25 Q2 25 weakening of the US dollar. Adjusted operating
Slide 14: Cash position and FCF
Cash position and FCF Strong cash position slightly lower in Q2, due to dividends and buybacks Cash Free cash flow Free cash flow (FCF) (€m) (€m) • FCF decreased to €125 million, down from €264 million in Q1 2025, primarily due to increased income 1,145 350 tax payments, an increased capex and capit
Slide 15: Capex and working capital
Capex and working capital Continued investment in R&D infrastructure Capital expenditures Working capital Capital expenditures (€m) (€m) • Capex increased from €30 million in Q1 2025 to €44 million in Q2 2025, mainly due to our continued 80 680 100 investment in R&D facilities in Korea and Scottsdal
Slide 16: Financial outlook
Financial outlook As included in the Q2 2025 press release published on July 22, 2025: We expect revenue in the second half of 2025 to be approximately similar to the level in the first half, at constant currencies. For Q3 2025, we expect total ASM revenue to be flat to slightly lower, in a range of
Slide 17: Business environment, strategy, and targets
Business environment, strategy, and targets July 22, 2025 ASM proprietary information | 17
Slide 18: Digital transformation drives structural growth
Digital transformation drives structural growth Semiconductor revenue (US$ billion) Source: TechInsights, June 2025 July 22, 2025 ASM proprietary information | 18
Slide 19: Third-party WFE market forecasts
Third-party WFE market forecasts WFE spending driven by multi-year trends WFE market forecast WFE sales by application WFE growth driven by secular trends of AI, 5G, (US$b) (US$b) EV, edge computing, etc. • Longer-term trend supported by multi-year 140 120 investments • Further scaling, 3D transitio
Slide 20: ASM is focused on deposition equipment
ASM is focused on deposition equipment ASM’s positioning: WFE market segments in 2024 (US$b) • ASM’s focus is on deposition • We are market leader in ALD (mid-50s % share). ALD accounts for more than half of our total equipment revenue • Expanding our position in the Si Epi market 9 • Selective grow
Slide 21: Strategy: Growth through Innovation
Strategy: Growth through Innovation Our purpose is to improve people’s lives through advancing technologies that unlock new potential Drive strong financial Increase Si Epi market share performance Grow ALD business by maintaining Accelerate Strategic leadership in logic/foundry and sustainability o
Slide 22: ALD market to increase to $4.2-5.0b by 2027
ALD market to increase to $4.2-5.0b by 2027 Single-wafer ALD market outlook Logic/foundry (US$b) • GAA transition • High-k gate & Vt tuning • Sacrificial layers, HM, ESL >55% • Metals >55% share • Selective ALD share • High aspect ratio TSV 5 US$5.0bn >55% share US$4.2bn Memory 4 US$3.7bn • High-k g
Slide 23: Si Epi market to reach $2.3-2.9b by 2027
Si Epi market to reach $2.3-2.9b by 2027 • Change in market mix towards leading edge Si epitaxy market outlook (US$b) expected in 2024-2027 with move to GAA • CAGR Si epitaxy market ‘22-’27 3-8%, with leading-edge segment outgrowing epi market with CAGR ‘22-’27 of 10-15% >30% >30% share share target
Slide 24: Increased ALD and Epi SAM with move to GAA
Increased ALD and Epi SAM with move to GAA Evolution of logic device architecture Increased ALD & Epi SAM with move to GAA FinFET ASM internal market data, figures not to scale GAA-based transistors offer the potential to deliver higher capability Increases served available market for ASM by ~ US$40
Slide 25: Logic GAA creates new ALD/Epi opportunities
Logic GAA creates new ALD/Epi opportunities New interconnect metals: MIM • Molybdenum replacing CVD Tungsten and PVD Copper Selective deposition processes for Channel Epi performance and Yield: Source/Drain Epi • DoD and MoD M1 M0 Increasing embedded functionality: Epi Si a) additional memory with I
Slide 26: Accelerating sustainability for a better tomorrow
Accelerating sustainability for a better tomorrow Responsible Sustainability Innovation People Planet supply chain governance Driving towards a more Our people drive our We are on a journey Our work has impacts far We are committed to sustainable future. success. Through our core towards a greener,
Slide 27: Target Net Zero by 2035
Target Net Zero by 2035 ASM launched its Climate Transition Plan (CTP) in March 2024 • Detailing how we aim to achieve our Net Zero by 2035 target As an important milestone, we achieved our target of 100% renewable electricity in 2024 • Driving a 52% year-over-year reduction in Scope 1 + 2 GHG emiss
Slide 28: Sustainability fully integrated into product development
Sustainability fully integrated into product development Our vision is to develop differentiated & eco-efficient tools & processes, while maximizing energy saving through product innovation. Our aim is to lower energy/precursor usage, emissions and cost per wafer July 22, 2025 ASM proprietary inform
Slide 29: People are at the heart of our success
People are at the heart of our success Headcount growth Voluntary attrition 5,000 4,654 4,632 4,632 4,397 4,000 3,462 2021 11.1% 3,000 2022 10.2% 2,000 1,453 1,146 2023 6.6% 1,000 730 588 588 Headcount 2024 6.8% New hires - 2021 2022 2023 2024 Culture Diversity Employee voice and growth Gender Natio
Slide 30: Investor Day targets FY25* and FY27 targets
Investor Day targets FY25* and FY27 targets * As communicated in the Q2 25 earnings report, published on July 22, 2025, we expect revenue growth at constant currencies in 2025 to be around the midpoint of the guidance range of +10% to +20%. We continue to expect to outperform the WFE market, which i
Slide 31: Annex: detailed financials
Annex: detailed financials July 22, 2025 ASM proprietary information | 31
Slide 32: (Estimated) amortization and earn-out expenses
(Estimated) amortization and earn-out expenses € million Q2 24A Q1 25A Q2 25A FY 25E FY 26E FY 27E FY 28E Net research and development expenses (3.5) (3.5) (3.5) (14.0) (13.9) (13.9) (13.9) Selling, general and administrative expenses (1.2) (1.2) (1.2) (4.9) (4.7) (4.0) (3.9) Total impact on operati
Slide 33: Adjusted and reported P&L reconciliation
Adjusted and reported P&L reconciliation € million Q1 2025 reported Δ Q1 2025 adjusted Q2 2025 reported Δ Q2 2025 adjusted Revenue 839 839 836 836 Gross profit 448 - 448 433 - 433 Gross margin 53.4% 53.4% 51.8% 51.8% SG&A (77) 1 (76) (74) 1 (73) SG&A as a % of revenue 9.2% 9.1% 8.8% 8.7% Net R&D (10
Slide 34: Income statement (reported)
Income statement (reported) € million Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 New orders 755 815 731 834 702 Backlog 1,576 1,559 1,566 1,515 1,295 Book-to-bill ratio 1.1 1.0 0.9 1.0 0.8 Revenue 706 779 809 839 836 Cost of sales (354) (394) (402) (391) (402) Gross profit 352 384 407 448 433 Other inc
Slide 35: Balance sheet
Balance sheet € million Jun. 24 Sep. 24 Dec. 24 Mar. 25 Jun. 25 PP&E (incl. RoU assets) 449 458 519 515 516 Evaluation tools at customers 91 107 110 110 110 Goodwill 321 320 321 321 319 Other intangible assets 770 789 816 837 871 Investments in associates 892 859 904 663 642 Other non-current assets
Slide 36: Cash flow statement
Cash flow statement € million Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net earnings (losses) from operations 159 128 226 (29) 202 Adjustments to reconcile net earnings to net cash from 18 60 35 298 42 operating activities Depreciation, amortization and impairments 44 51 59 60 58 Income tax paid (21)
Slide 37: Gross and net R&D expenses (reported)
Gross and net R&D expenses (reported) € million Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Gross R&D expenses 118 118 126 123 132 Capitalization of development expenses (45) (38) (40) (43) (54) Amortization of capitalized development expenses 13 19 22 24 23 Impairment capitalized development expenses 1
Slide 38: Quarterly impact of the modified reporting revenue
Quarterly impact of the modified reporting revenue Spares & services € million Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 2024 reported Equipment revenue 534 583 624 645 2,385 Spares & service revenue 105 123 155 164 547 Total revenue 639 706 779 809 2,933 Installation & qualification revenue 19 20 20
Slide 39: Working capital: historical development
Working capital: historical development €m 900 80 800 70 700 60 600 50 500 40 400 30 300 20 200 100 10 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 2025 Working capital (lhs) Quarterly sales (lhs) Days of working capital (rhs) Numbers based
Slide 40: Orders and backlog: historical development
Orders and backlog: historical development €m 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024 2025 Backlog Orders Numbers based on reported financials Q1 and Q4 2019 exclude the impact of patent litigation and arbitra
Slide 41: Revenue and operating result: historical development
Revenue and operating result: historical development €m 3,500 900 800 3,000 700 2,500 600 2,000 500 1,500 400 300 1,000 200 500 100 - - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue (lhs) Operating result (rhs) 2019 numbers exclude settlement gains of €159m 2022, 2023, and
Slide 42: Cash returned to shareholders
Cash returned to shareholders Dividend per share Cumulative cash returned to market (€ paid over) (€m) 3,000 2,500 2,000 1,500 3.00 3.00 2.75 2.50 2.50 1.50 2.00 1,000 1.00 500 0.80 0.60 0.70 0.70 1.50 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2015 2016 2017 2018 2019 2020 2021 2022
Slide 43: For more information visit asm.com
For more information visit asm.com July 22, 2025 ASM proprietary information | 43